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Yeah, it's not just your overpriced PCB assembly causing you grief, it's the old-school playbook you're still following. Let’s talk about the five biggest outdated practices that are holding hardware startups back and what you should be doing instead.
Still Using Eagle? Time to Move On
If you're still designing in Eagle, I have bad news: it's not free and it’s going away. Autodesk bought it back in 2016, stuffed it into Fusion 360, and has now set a deprecation date for 2026. So, if you’re still clinging to it, you're on borrowed time. The best free alternative right now is KiCad 9.0, the latest release has the ability to output ODB++ files (which is what modern manufacturing actually wants).
Looking for a step up? Here’s the hierarchy of modern PCB design tools:
- Entry-level (Free): KiCad 9.0
- Mid-tier (Paid, but powerful): Altium Designer, Cadence OrCAD, Siemens PADS
- Top-tier (Industry standard for complex designs): Cadence Allegro, Siemens Expedition
- AI Automated EDA: The jury is still out, maybe for very simple designs but beyond that we can’t make any recommendations yet.
If you're using Eagle, the writing’s on the wall. Get out before it becomes completely obsolete.
Relying Solely on DigiKey for Component Selection
Look, DigiKey is great. It’s fast, has fantastic parametric search tools, and is a household name in component procurement. But here’s the problem: they only show you component choices and inventory for their own franchised lines.
That means:
- You're missing out on alternative component selections
- You’re not seeing full market availability
- You could be overpaying or dealing with stock shortages you don’t need to
The better approach? Use an aggregator like Octopart. It provides the same search functionality as DigiKey, but with components from all major distributors, not just one. This gives you a complete picture of pricing, lead times, and availability.
Bottom line: relying only on DigiKey is like grocery shopping at just one store when you could check prices at ten with a single click.
Committing to a Full-Turnkey EMS Company Too Early
Picking an Electronic Manufacturing Services (EMS) company is like choosing a long-term partner. If you rush into a commitment, you might wake up one day realizing you’re stuck with the wrong one.
Here’s why jumping straight into full-turnkey EMS is risky:
- Your inventory gets locked up: Once your components are at an EMS, transferring to another manufacturer is a logistical nightmare.
- Traceability issues: Moving materials between EMS providers breaks the chain of custody, making quality control harder.
- Exit logistics are painful: If you decide to switch EMS providers, your old one may not be happy about it, and transitioning out can be a mess.
Consider instead an approach that separates the fate of your inventory from the fate of your relationship. Taking this approach might require a little more effort but will save you lots of time and money if things don't work out.
- Start by handling the materials yourself or using a hybrid approach.
- Build the relationship with your EMS over time before committing to full turnkey.
- Once you're sure they're the right fit, then you can lock in
.
Excel-Based Planning: A Disaster Waiting to Happen
If your supply chain management is running on Excel, I have bad news: you're already behind.
Yes, Excel is powerful. But here’s the problem:
- It doesn’t scale: As your production grows, your spreadsheet spaghetti will turn into a tangled mess.
- It’s error-prone: One misplaced cell, one accidental keystroke, and you’re making purchasing decisions based on bad data.
- It lacks real-time visibility: No integrations, no automatic updates, no live tracking of inventory or demand changes.
Sure, Excel might work for now, kinda. But ask yourself: Will I still be using it in a year? The answer is "probably not," so don’t waste time creating a system that you’ll soon replace.
Jumping Into ERP Too Early
Here’s the thing about Enterprise Resource Planning (ERP) software: it’s overkill for most early-stage startups. ERPs are designed for large companies with complex operations, integrating finance, supply chain, and production management into one system. But early on, you probably:
- Don’t have complex supply chain needs yet
- Are still figuring out what your processes even should be
- Have a tiny finance team (or no finance team)
And worst of all? Finance teams love ERPs because they integrate accounting, so they might push for a system that works for them, but not for your hardware operation. ERPs can be a great tool—but if you jump in too soon, you’ll waste time and money on a system you don’t fully understand or need yet.
The Bottom Line
Hardware startups have a high enough failure rate without outdated practices dragging you down. If you’re still relying on Eagle, using DigiKey like it’s the only supplier in the world, committing to a turnkey EMS too soon, running everything out of Excel, or rushing into ERP… you’re making life way harder than it needs to be.
Here’s the playbook you should be using:
- Switch to modern PCB design tools (KiCad, Altium, Cadence, Siemens)
- Use aggregators like Octopart for component sourcing
- Start with labor-only EMS engagement before going full-turnkey
- Move beyond Excel-based planning ASAP
- Wait before committing to an ERP
The hardware startups are hard enough already—don't make it harder with outdated tools.